Qualcomm Chief Executive Paul Jacobs is telling one story; shares of his company seem to be telling another.
"Business is actually going quite well," Jacobs told CNBC Friday morning, although shares were down as much as 7 percent Friday in a broad technology sell-off. The stock recouped much of those losses later in the day.
Qualcomm, which develops chips for mobile phones, gave disappointing full-year forecasts Thursday, citing lower-than-expected handset demand and higher litigation-related costs.
"We obviously had to take out some of the revenue recognition for Nokia, because of our dispute, and I think people have gotten overly focused on that," Jacobs said.
The outlook was the second big shock for the technology sector in 24 hours, and overshadowed Qualcomm's quarterly profit, which was a penny per share ahead of average analyst estimates.
Network equipment maker Cisco Systems warned on Wednesday that demand from the financial sector had fallen dramatically in the company's most recent fiscal quarter.
Qualcomm said profit rose to $1.13 billion, or 67 cents a share, for its fiscal fourth quarter ended Sept. 30, from $614 million, or 36 cents a share, in the year-ago quarter. Revenue rose to $2.31 billion from $2 billion.
Excluding its investment arm, and other items, it posted earnings of 54 cents per share, a penny ahead of average analyst forecasts, according to Reuters Estimates.
Qualcomm forecast full-year 2008 earnings per share excluding its investment arm and other items, of $2.03 to $2.09, below analysts' average forecast of $2.19 per share.
It forecast 2008 revenue of $9.5 billion to $9.9 billion, compared to the average analyst expectation of $9.97 billion.
Still, Jacobs insists business is booming, and urged investors to focus on fundamentals. "For example, we shipped 68 million chipsets in the last quarter," he said. "We're projecting up to as much as 78 million in the next quarter, and in fact, our demand is so strong, we're having trouble supplying all the demand."
-- Reuters contributed to this report